The total Financial Services Compensation Scheme (FSCS) levy for the 2021/22 financial year is now £717 million, far lower than the initial estimate of more than £1 billion announced in January of this year.

The amounts paid out by the FSCS, funded by a levy on authorised financial services firms, to compensate claims made against firms unable to cover the payouts themselves, had still risen from the £700 million in payouts in 2020/2021.

While news of the drop from previous estimates was welcomed by twealth management trade association PIMFA, the organisation also pointed out that levies were also due to rise in the ...